New research published today by FIS^® (NYSE: FIS), a global leader in financial services technology, reveals that global C-suite executives plan to invest significantly in Web3, environmental, social and governance (ESG) frameworks, and integrated finance in 2023 as companies seek innovation fintech to fuel growth despite economic uncertainty.

The inaugural 2023+Global+Innovation+Report asked senior and c-suite executives in financial services (banks, insurance companies, capital markets companies and fintechs) and non-financial businesses (retail, restaurant, travel, gaming and digital content, and technology providers) globally on its key areas of financial investment in 2023.

According to the study, most executives around the world say they expect a major or moderate impact from the following areas of fintech in the coming year: ESG (84%), integrated finance (84%), decentralized finance (DeFi) (82%). ), the metaverse (80%) and cryptocurrencies (77%).

These projections are largely reflected by US executives, who expect innovation in these spaces to impact their business by 2023: ESG (83%), DeFi (82%), integrated finance (81%), metaverse (78%) ) and cryptocurrencies (78%).

“As the threat of a global economic slowdown looms and companies look for ways to thrive during the downturn, it is clear that unleashing growth requires focus, top-down executive support, a culture of innovation, and collaboration to anticipate and adapt. to consumer demand. said Himal Makwana, FIS’s global director of product strategy and Web3. “Our findings show that many executives view decentralized finance, web3 infrastructure, digital assets, and currencies as critical components of their long-term strategy, from both a defensive and offensive perspective, to help lead the way into the next phase. of the digital revolution”.

American companies are planning digital assets and next-generation internet

The next generation of the internet, dubbed Web3, is centered around a decentralized infrastructure like blockchain technology and includes innovations like cryptocurrency, DeFi, and the metaverse. According to new FIS research, the US is keeping pace with other countries’ investment in Web3 as organizations around the world search for the next growth opportunity.

• While almost a third (29%) of US respondents expressed no interest today in developing cryptocurrency services, only 5% of financial services companies told FIS that they do not anticipate offering such capabilities three years from now. .

• Financial services companies cited a lack of ecosystem services to support cryptocurrencies (29%), a lack of interoperability between platforms (28%), and a lack of clarity around regulations (26%) as key barriers to a greater adoption within their organizations.

• Non-financial services companies shared similar concerns; however, 24% noted that the lack of crypto services from banks and other financial service providers is a barrier.

• Nearly half of US financial services companies (47%) recognized DeFi as a great growth opportunity for their organization.

• There are concerns about DeFi, with 50% of financial services companies citing poor user experience as a barrier to adoption and 47% saying they need to better understand the risks involved before getting involved.

• 59% of financial services companies are actively researching potential opportunities in the metaverse, while 45% of non-financial companies say it will be strategically important to have a presence in the metaverse in the next three years.

Integrated Finance to Power America’s Businesses in 2023

Integrated finance is when consumers have unique and personalized financial services provided by non-financial companies at the point of need. Integrated payments are more familiar to consumers, enabling the speed and convenience of paying for goods and services in one app with a single click. New use cases are emerging in banking, lending and investing, and the momentum to offer integrated financial services is growing in the US.

• 36% of financial services firms will invest significantly in developing integrated financial products within 12 months, according to the study.

• Meanwhile, 59% of non-financial companies that see an impact of integrated finance on their business told FIS that they will respond by increasing their technology or research and development budget this year.

ESG is widely seen as a competitive necessity in the US.

ESG is the systematic consideration of environmental, social, and governance factors along with financial factors when making decisions about investments, business practices, and business relationships. Backed by the right technology, ESG can open up new opportunities for growth and competitiveness in the US market.

• 56% of financial services companies in the US say ESG offers an opportunity to improve their competitiveness in the marketplace.

• 60% of financial services companies told FIS that they are developing new products and services.

• To address difficulties in accessing and analyzing their own ESG data, 56% of financial services companies say they are investing in technology to improve reporting and disclosures, giving clients more transparency into ESG scores and/or providing more granular ESG ratings of assets and securities.

Methodology

All data is based on a survey of 2,000 executives from financial services firms (banks, insurers, capital markets firms, and fintechs) and non-financial services firms (traders, corporates, and technology providers) in nine countries (Australia, Brazil, Canada, Germany, Hong Kong, India, Singapore, the United Kingdom and the United States). The survey was conducted by Longitude Partners on behalf of FIS between July and September 2022.

About+FIS

FIS is a leading provider of technology solutions to financial institutions and businesses of all sizes and in any industry worldwide. We enable the movement of commerce by unlocking the financial technology that powers the global economy. Our employees are dedicated to improving the way the world pays, banks and invests through our trusted innovation, system performance and flexible architecture. We help our clients use technology in innovative ways to solve critical business challenges and deliver superior customer experiences. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500^® and the Standard & Poor’s 500^® Index. For more information, visit www.FISglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (%40FISglobal).

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